Itoham Yonekyu Holdings, Inc. · TSE:2296
Itoham Yonekyu — FY2022 Earnings Presentation
59 slides from Itoham Yonekyu's earnings presentation, Jun 13, 2023
Slide 1: Financial Results for FY2022 (Ending March 31, 2023)
Itoham Yonekyu Holdings Inc. Financial Results for FY2022 (Ending March 31, 2023) May 09, 2023 *This document has been reposted with the content on page 16 revised. June 13, 2023 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 2: Table of Contents
Table of Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Medium-term Management Plan 2023 Progress Explanatory Materials 03 Supplemental Data 04 Appendix 1 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 3: Consolidated Results for the year to date
01 Consolidated Results for the year to data ※Round off to second decimal places The Sales increased by 8.0% due to rising meat prices and price revision for processed foods. The Ordinary profit decreased by 8.9% due to the higher raw material prices and utility costs. FY2022 Full year result bi
Slide 4: Segment Results of Operations for the year to date
01 Segment Results of Operations for the year to data ※Round off to second decimal places The Ordinary profit of Processed Food Division decreased by 52.3%, because the price revision have not covered the risen raw material costs and utility costs. The Ordinary profit of Meat Division increased
Slide 5: Full-year operating forecast (Quarterly Progress)
01 Full-year operating forecast（Quarterly Progress） ※Round off to second decimal places Due to the strong performance of ANZCO Foods in the first half and the increase in raw materials and utility costs in the second half, profits are more concentrated in the first half than in previous years. Con
Slide 6: Sales of each country and region for the year to date
01 Sale of each country and region for the year to data ※Round off to second decimal places The mainly Overseas Sales was export sales of beef and lamb by ANZCO Foods. In FY2022, sales to US grew significantly, due to increased demand of ground meat. From a long-term perspective, we expect to
Slide 7: Forecast of Consolidated Financial Results
01 Forecast of Consolidated Financial Results ※Round off to second decimal places It would be assumed that the Ordinary profit decrease by 4.0%. In the Processed Food Division, we assume increasing in sales and profits. In the Meats Division, we assume increasing in sales and decreasing in pro
Slide 8: Consolidated Results trends for the full-year
01 Consolidated Results trends for the full-year ※Round off to second decimal places *billion yen Sales Operating profit/margin ratio 950 930.0 30 3.5% 922.7 3.0% 2.9% 25 2.7% 3.0% 900 2.6% 2.5% 2.5% 854.4 2.5% 850.7 852.5 20 2.0% 850 831.9 横位置：1.6 cm 1.7% 2.0% 811.5 15 792.6 縦位置：3.0 cm 横位置：13.0 cm
Slide 9: Segment Forecast for FY2023 Full-year
01 Segment Forecast for FY2023 Full-year ※Round off to second decimal places In the Processed Food Division, it would be assumed that the ordinary profit increase by 17.6%. because the raw material and utility costs are expected to rise further, mainly in the first half, however this will be cover
Slide 10: Shareholders Return Policy
01 Shareholders Return Policy ※Round off to second decimal places FY22 : Dividend of 24 yen/share (increase), Acquisition 5 billion yen of Treasury stocks, and Elimination 10 million Treasury stocks FY23 : Dividend of 25 yen/share (increase), Acquisition 2 billion yen of Treasury stocks, and Eli
Slide 11: Rearrangement of segment
01 Rearrangement of segment ※Round off to second decimal places From this fiscal year, the segment was changed from the production category to the organizational unit. From this fiscal year, segment indicative profit was changed from operating profit to ordinary profit. The previous year's res
Slide 12: Table of Contents
Table of Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Medium-term Management Plan 2023 Progress Explanatory Materials 03 Supplemental Data 04 Appendix 11 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 13: Processed Food Division Results: 2022 year to date profit
01 Processed Food Division Results : 2022 year to date profit ※Round off to second decimal places The Ordinary profit decreased by 52.3%, because previous price revisions have not covered the risen raw material costs and utility costs. Segment Info FY2022 Full year result billion yen % Year-on-Yea
Slide 14: Processed Food Division Results: profit analysis
01 Processed Food Division Results : 2022 year to date profit analysis ※Round off to second decimal places Sales unit price increased by Ham and Sausage +4.2%, and Cooked Processed Food +4.3%. Raw material/utility cost (-15.8 billion yen) have exceeded the price revisions effect (+11.5 billion y
Slide 15: Processed Food Division: 2023 Full-year financial forecast
01 Processed Food Division : 2023 Full-year financial forecast ※Round off to second decimal places It would be assumed that the ordinary profit increase by 17.6%. because the raw material and utility costs are expected to rise further, mainly in the first half, however this will be covered by pric
Slide 16: Processed Food Division: FY2023 financial forecast analysis
01 Processed Food Division : FY2023 financial forecast analysis ※Round off to second decimal places The price revision were conducted again from April and make steady progress to the markets. The cost for raw materials and utilities would be increased by 11.0 billion yen around the first half ma
Slide 17: Processed Food Division: Topics
01 Processed Food Division : Topics ※Round off to second decimal places In FY2022, we did conduct the 2nd price revision and internal improvements continuously, however it have not covered the increasing. In FY2023, we will conduct the 3rd price revision, category management sales promotion and
Slide 18: Table of Contents
Table of Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Medium-term Management Plan 2023 Progress Explanatory Materials 03 Supplemental Data 04 Appendix 17 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 19: Meat Division Results: 2022 year to date profit
01 Meat Division Results : 2022 year to date profit ※Round off to second decimal places ANZCO Foods have kept the favorite result due to rising global beef market prices, and ordinary income increased by 21.7%. Segment Info FY2022 Full year result billion yen % Year-on-Year Previous forecast Amoun
Slide 20: Meat Division Results: profit analysis
01 Meat Division Results : 2022 year to date profit analysis ※Round off to second decimal places ANZCO Foods has increase the profits as a background of worldwide high beef market prices (+6.6 billion yen ) . Income from non-controlling interests of Indiana Packers corporation decreased - 1.5 bi
Slide 21: Meat Division: 2023 Full-year financial forecast
01 Meat Division : 2023 Full-year financial forecast ※Round off to second decimal places It would be assumed that the ordinary profit decrease by 11.5%, because the domestic business is assumed to increase profit due to thoroughly value chain management , however it would be difficult to cover dec
Slide 22: Meat Division: FY2023 earnings forecast analysis
01 Meat Division : FY2023 earnings forecast analysis ※Round off to second decimal places Due to falling the global beef market prices, it would be assumed that overseas operations decrease the profit -5.4 billion yen. In regard to domestic business, we assume an increase of “ Gross Margin,SG&A ”
Slide 23: Meat Division: Topics (Overseas Business)
01 Meat Division : Topics (Overseas Business) ANZCO Foods has achieved the past highest record for 2 consecutive years. Strengthen group’s earning power through the effective use of by-products such as the healthcare business. ~ FY2022 FY2023 ~ ANZCO Foods has achieved the past highest record
Slide 24: Meat Division: Topics (Domestic Business)
01 Meat Division : Topics (Domestic Business) We will improve the profitability though strengthen farming business such as construction of “Towada Meat Plant” in the FY2022 and opening of “Isa Meat Plant“ in the FY2023. We ensure to gain profit steadily by thoroughly value chain management. ~ FY
Slide 25: Table of Contents
Table of Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Medium-term Management Plan 2023 Progress Explanatory Materials 03 Supplemental Data 04 Appendix 24 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 26: Group Philosophy and Vision
02 Group Philosophy and Vision Group Principle Contribute to the realization of sound and affluent society through business. Vision A leading food company that continuously evolves with its employees by embracing the spirit of fairness and the challenge to progressions. company’s Principle “Serving
Slide 27: Guidelines and Action Plans of the Medium-term management plan 2023
02 Guidelines and Action Plans of the Medium-term management plan 2023 We are working on four themes of action plan based on Guidelines to have achievement further growth and leap by “Think outside the box” and “Re-discover our strengths”. The medium-term The medium-term 2016 Group management plan
Slide 28: Performance trends
02 Performance trends FY2020 : We achieved to recover the favorite profit position as the cause of successful cost reduction, synergy effects, expanded demand for consumer products, improved profitability of processed foods and recovery of ANZCO Foods etc. FY2023 : We keep conducting the interna
Slide 29: Performance trends: ordinary income change factors
02 Performance trends We assume 34.2 billion yen increasing cost by sum of raw material costs, utility costs, and distribution costs, during the period of the Medium-term Management Plan 2023. We assume 32.0 billion yen increasing profit by price revisions for processed food business, value chai
Slide 30: Theme and action plans of the Medium-term management plan 2023
02 Theme and action plans of The Medium-term management plan 2023 First of all, we have conducted form the foundation of “Ⅳ. Strengthen management base” and then go ahead the process of “I. Strengthen earnings base“, “Ⅱ. Initiatives for new businesses and markets”, and “Ⅲ. Initiatives for sustaina
Slide 31: Strengthen management base: Factories restructuring
02 I. Strengthen management base Processed Food Division Factories restructuring In 2022, we launched in reconstruction of Yume factory then it plan to reborn and start operating as a frozen foods manufacturing factory in 2023. We will going forward the full-scale restructuring of our production
Slide 32: Strengthen management base: Strengthening WAGYU export
02 I. Strengthen management base Meat Division (Domestic) Strengthening WAGYU export FY2022, WAGYU exports increased by 3.7% year-on-year, utilize subsidiary SANKYOMEAT INC. who is one of the largest export processing facility in Japan. From now on, we will develop various cutting products that
Slide 33: Initiatives for new businesses and markets
02 Ⅱ. Initiatives for new businesses and markets Actions for a stable supply of protein We established “Consortium for Future Innovation by Cultured Meat” with Gradduate school of Engineering, Osaka University, Shimadzu, Toppan, and SIGMAXYZ. then aiming to realize the world's first use of culture
Slide 34: Initiatives for sustainability: Considering the environment
02 Ⅲ. Initiatives for sustainability Materiality : Considering the environment We set 5 action plans and KPIs as follows: “greenhouse gas emissions”, “the consumption of energy and Water”, “waste emissions” Action plans KPIs FY2021 Goals Reducing greenhouse gas greenhouse gas emissions Reducing
Slide 35: Initiatives for sustainability: Workplace
02 Ⅲ. Initiatives for sustainability Materiality : Creating a workplace where each employee can actively participate We set 5 action plans and KPIs as follows: “Number of participants in training” and “Ratio of female Senior managers” and “Ratio of female chief managers” and “Rate of taking paid l
Slide 36: Strengthen management base: Reorganization
02 Ⅳ. Strengthen management base Reorganization April 1, 2023, We will consolidate the organization, which used to be a company unit, into a functional unit and make it a more efficient and simple organization. This changes are working to create more competitiveness and efficiency as a Itoham Yo
Slide 37: Table of Contents
Table of Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Medium-term Management Plan 2023 Progress Explanatory Materials 03 Supplemental Data 04 Appendix 36 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 38: Supplemental Data: Profit/Loss
03 Supplemental Data : Profit/Loss ※Round off to second decimal places Year Actual Sale of each country and region *Previous year *Reclassed *Reclassed Account billion yen published figures Account billion yen FY2021 FY2022 FY2021 FY2021 FY2022 Year Year Change Year Year Year Change Sales 854.4 922.
Slide 39: Supplemental Data: S,G & A Expenses / Non-operational G/L
03 Supplemental Data : S,G & A Expenses / Non-operational G/L ※Round off to second decimal places S,G & A Expenses Non-operational Gain/Loss *Previous year *Reclassed Account billion yen published figures billion yen FY2021 FY2022 FY2021 FY2021 FY2022 Year Year Change Year Year Year Change Non-Opera
Slide 40: Supplemental Data: Balance Sheet
03 Supplemental Data : Balance Sheet ※Round off to second decimal places billion yen FY2021 FY2022 FY2021 FY2022 Change Change Year end Year end Year end Year end Current Assets 243.4 256.5 +13.1 Total Liabilities 150.4 167.5 +17.1 Cash and Term Deposits 48.0 22.7 -25.3 Current Liabilities 126.5 152
Slide 41: Supplemental Data: Cash flow statement
02 Supplemental Data : Cash flow statement ※Round off to second decimal places billion yen FY2021 FY2022 Year Year Change ①Cash Flow from Operation 18.5 3.9 -14.5 横位置：1.0 cm Income Before Taxes 28.2 25.0 -3.2 横位置：14.2 cm 縦位置：2.8 cm 縦位置：3.2 cm Depreciation 倍率：100% 11.5 12.2 +0.7 倍率：100% Change in Rec
Slide 42: Supplemental Data: Itemized Sales
03 Supplemental Data : Itemized Sales ※Round off to second decimal places Itemized Sales billion yen Consolidated Processed Food Div. Meat Div. Others FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 Year Year change Year Year change Year Year change Year Year change Sales 854.4 922.7 +68.3 3
Slide 43: Supplemental Data: Quarterly earnings trends by segment
02 Supplemental Data ： Quarterly earnings trends by segment ※Round off to second decimal places billion yen 1Q 2Q 3Q 4Q Apr. - Jun. Jul. - Sep. Oct. - Dec. Jan. - Mar. 2022 2021 2022 2021 2022 2022 2022 2022 Change Change Change Change results results results results results results F'cast results S
Slide 44: Supplemental Data: FY2022 profit increase/decrease factors
02 Supplemental Data ： FY2022 profit increase/decrease factors ※Round off to second decimal places billion yen Processed Food Div. First Half Scond Half Year Rev 9-May. Rev 3-Aug. results Rev 9-May. Rev 3-Aug. Rev 3-Nov. Rev 3-Feb. results Rev 9-May. Rev 3-Aug. Rev 3-Nov. Rev 3-Feb. results FY2021 O
Slide 45: Supplemental Data: Full-year earnings forecast analysis trends
02 Supplemental Data ： Full-year earnings forecast analysis trends ※Round off to second decimal places billion yen First Half Scond Half Year FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 Change Change Change F'cast results F'cast results F'cast results Sales 455.0 448.0 +7.0 475.0 474.7 +0.3 930.0 922.
Slide 46: Table of Contents
Table of Contents 01 Earnings Results - Consolidated Results/Forecast - Processed Food Division Results/Forecast - Meat Division Results/Forecast 02 Medium-term Management Plan 2023 Progress Explanatory Materials 03 Supplemental Data 04 Appendix 45 ITOHAM YONEKYU HOLDINGS INC. 2023
Slide 47: Appendix: Overseas Markets
04 Appendix : Overseas Markets Pork Carcass - Denmark Picnic - USA （DKK/kg） （USD/lb） 15.00 1.90 2019 14.00 2020 2019 1.70 2020 2021 2022 2021 13.00 1.50 2022 2023 2023 12.00 1.30 横位置：0.80 cm 横位置：13.00 cm 11.00 縦位置：2.50 cm 1.10 縦位置：2.50 cm 10.00 倍率：100% 0.90 倍率：100% 9.00 0.70 8.00 0.50 7.00 0.30 11 1
Slide 48: Appendix: CPI
04 Appendix : CPI Beef Chicken +20.0 +20.0 +18.0 Food +18.0 Food +16.0 +16.0 +14.0 Beef (domestic) +14.0 Chicken vs. same period last year（％） vs. same period last year（％） +12.0 Beef (imported) +12.0 +10.0 +10.0 +8.0 +8.0 +6.0 +6.0 +4.0 +4.0 +2.0 +2.0 横位置：12.50 cm +0.0 横位置：0.5 cm +0.0 -2.0 -2.0 縦位置：2
Slide 49: Appendix: Ham & Sausage Supply
04 Appendix : Ham & Sausage Supply Domestic Production Imports 55,000 5,000 FY2020 FY2021 4,500 50,000 FY2022 4,000 Domestic (ton) 45,000 Import (ton) 3,500 横位置：2.00 cm 横位置：12.9 cm 縦位置：2.50 cm 縦位置：2.50 cm 3,000 40,000 倍率：100% 倍率：100% FY2020 2,500 35,000 FY2021 FY2022 2,000 30,000 1,500 (ton) Apr. Ma
Slide 50: Appendix: Ham/Sausage domestic market share
04 Appendix : Ham/Sausage domestic market share ham/sausage domestic market ham/sausage domestic market Our share Value per 100 monitors year-on-year Average price year-on-year (%) (%) (%) 24.0 115.0 115.0 FY2021 110.0 110.0 FY2022 横位置：17.10 cm 20.0 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 10
Slide 51: Appendix: Wiener domestic market share
04 Appendix : Wiener domestic market share Wiener domestic market Wiener domestic market Our share Value per 100 monitors year-on-year Average price year-on-year (%) (%) (%) 24.0 115.0 115.0 110.0 110.0 横位置：17.10 cm 20.0 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 縦位置：3.00 cm 105.0 縦位置：3.00 cm 105.0 倍率：104%
Slide 52: Appendix: Slice pack of ham, bacon, etc. domestic market share
04 Appendix : Slice pack of ham, bacon, etc. domestic market share Slice pack of ham, bacon, etc. domestic market Slice pack of ham, bacon, etc. domestic market Our share Value per 100 monitors year-on-year Average price year-on-year (%) (%) (%) 24.0 115.0 115.0 FY2021 110.0 110.0 横位置：17.10 cm 20.0
Slide 53: Appendix: Pizza/Snacks domestic market share
04 Appendix : Pizza/Snacks domestic market share Pizza/Snacks domestic market Pizza/Snacks domestic market Our share Value per 100 monitors year-on-year Average price year-on-year (%) (%) (%) 42.0 115.0 115.0 FY2021 110.0 110.0 FY2022 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm 34.0 縦位置：3.00 cm
Slide 54: Appendix: Hamburger steak/Meatball domestic market share
04 Appendix : Hamburger steak/Meatball domestic market share Hamburger steak/Meatball domestic market Hamburger steak/Meatball domestic market Our share Value per 100 monitors year-on-year Average price year-on-year (%) (%) (%) 24.0 115.0 115.0 110.0 110.0 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.
Slide 55: Appendix: Processed chicken food domestic market share
04 Appendix : Processed chicken food domestic market share Processed chicken food domestic market Processed chicken food domestic market Our share Value per 100 monitors year-on-year Average price year-on-year (%) (%) (%) 30.0 115.0 115.0 110.0 110.0 横位置：17.10 cm 横位置：1.00 cm 横位置：8.90 cm 縦位置：3.00 cm
Slide 56: Appendix: Marketed Volume/Ending Stock/Market Price (Beef)
04 Appendix : Marketed Volume/Ending Stock/Market Price (Beef) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products 70,000 70,00
Slide 57: Appendix: Marketed Volume/Ending Stock/Market Price (Pork)
04 Appendix : Marketed Volume/Ending Stock/Market Price (Pork) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products 100,000 100,
Slide 58: Appendix: Marketed Volume/Ending Stock/Market Price (Chicken)
04 Appendix : Marketed Volume/Ending Stock/Market Price (Chicken) Estimated Marketed Volume Estimated Marketed Volume Estimated Ending Stock (Imported) (Domestic) (Imported) ※including meat for processed products ※including meat for processed products ※including meat for processed products 180,000 1
Slide 59: Contact Information
Contact Information ALT ITO Bldg. 1-6-21, MITA, MEGURO-KU, TOKYO , 153- 8587, JAPAN ITOHAM YONEKYU HOLDINGS INC. Public & Investor Relations Office TEL : +81-3-5723-6889 You can also contact us from the company website. https://www.itoham-yonekyu-holdings.com The current plans, forecasts, strategies
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